Broadcom wins conditional EU okay for $5.5 billion Brocade buy

Reuters News
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Posted: May 12, 2017 12:36 PM

BRUSSELS (Reuters) - Chipmaker Broadcom secured EU antitrust approval on Friday for its $5.5 billion bid for Brocade after pledging to cooperate with competitors and to protect their confidential data.

Singapore-based Broadcom, formerly Avago Technologies, makes connectivity chips used in products ranging from mobile devices to servers, while California-based Brocade produces networking switches, software and storage products.

The European Commission said the concessions offered by Broadcom addressed its concerns about the deal, confirming a Reuters story on May 9.

"Broadcom committed to cooperate closely and in a timely manner with competing HBA (host bus adaptor) cards suppliers to achieve the same level of interoperability as that of its own HBA cards and to protect third party confidential information," the EU competition watchdog said.

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The deal is the latest in the chip industry as companies bulk up in response to growing demand for chips in connected devices and cars.

(Reporting by Foo Yun Chee)